CIFI Holdings (Group) Co. Ltd.#s Proposed U.S. Dollar Senior Unsecured Notes Assigned #B+# Rating

Stocks and Financial Services Press Releases Thursday April 12, 2018 18:17
HONG KONG--12 Apr--S&P Global Ratings

HONG KONG (S&P Global Ratings) April 12, 2018--S&P Global Ratings today said it has assigned its 'B+' long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by CIFI Holdings (Group) Co. Ltd. (CIFI; BB-/Positive/--). The issue rating is subject to our review of the final issuance documentation.

We rate the senior unsecured notes one notch lower than the issuer credit rating because of subordination risk. The proposed notes will rank behind a material amount of secured debt and subsidiary level debt in CIFI's capital structure. As of Dec. 31, 2017, the company had around Chinese renminbi (RMB) 24.5 billion in secured borrowings and RMB 9.6 billion in unsecured debt at the subsidiary level, which was around 63% of total reported debt.

We expect CIFI to use the note proceeds predominantly to refinance existing debt, including the early redemption of its outstanding US$400 million senior notes (7.75% coupon and due 2020) after June this year. In our view, this will strengthen the company's debt maturity profile and help control its average funding costs.

The positive outlook reflects our view that CIFI will continue to expand in scale and diversity, advance its market position, and become a developer with a national presence. We forecast that the company will rapidly grow its sales and revenue in the next two years, while maintaining stable profitability and financial leverage.


Latest Press Release

Photo Release: KBank wins Best Private Bank in Thailand 2018 award on the global stage

Mr. Jirawat Supornpaibul, Private Banking Group Head, recently represented KBank to receive the "Best Private Bank in Thailand 2018" award at the PWM/The Banker Global Private Banking Awards, organized by The Banker Magazine. It is the 24th best private...

Fitch Affirms BAFS at #A+(tha)#; Maintains Negative Outlook

Fitch Ratings (Thailand) Limited has affirmed Bangkok Aviation Fuel Services Public Company Limited's (BAFS) National Long-Term Rating at 'A+(tha)' and maintained Negative Outlook. Fitch has also affirmed BAFS's National Short-Term Rating at...

SET lists first depositary receipt representing overseas ETF on December 18

The Stock Exchange of Thailand (SET)'s first depositary receipt, DR, representing a Vietnam exchange-traded fund (ETF), issued by Bualuang Securities pcl (BLS), will be listed on December 18 under the ticker symbol "E1VFVN3001". SET President Pakorn...

Fitch Affirms SMBC Bangkok Branch#s THB Notes at #AAA(tha)#

Fitch Ratings (Thailand) has affirmed the National Long-Term Ratings on Sumitomo Mitsui Banking Corporation, Bangkok Branch's (SMBC Bangkok Branch) Thai baht-denominated senior unsecured notes at 'AAA(tha)'. KEY RATING DRIVERS The note ratings are based...

Bangkok Bank joins with R3 consortium to develop new generation L/C service using Blockchain technology

Bangkok Bank collaborates with leading global trade finance banks to develop Letter of Credit (L/C) service using Blockchain technology to increase efficiency at every step of the transaction process. Bangkok Bank Executive Vice President Ian Guy Gillard...

Related Topics